Showing posts with label Congress. Show all posts
Showing posts with label Congress. Show all posts

Thursday, June 27, 2013

Curtains or a fresh lease?

The long-term fate of the Congress in Odisha will crucially hinge on whether it can cash in on the anti-incumbency factor in the 2014 Assembly polls, writes Dhrutikam Mohanty

For Odisha Congress, there is hope in the air. But so is trepidation. Leaders of the state party may not admit as much, but they are acutely aware that the 2014 Assembly polls will be their last chance to bounce back after being out of power for a decade and a half. On the face of it, the current political scenario in Odisha seems to be in favour of Congress, which has been out of power since 1999. With the anti-incumbency factor kicking in, this is the party’s best chance to topple the Naveen Patnaik government.

Congress, which held uninterrupted sway over Odisha for 35 years after Independence, is now facing an acid test. If it can’t get its act together this time around, it could well mean the beginning of another long spell in the wilderness.

 The ruling Biju Janata Dal (BJD) could face dissidence over distribution of party tickets. Its former strategist, Pyari Mohan Mohapatra, has floated a new political party, Odisha Jana Morcha (OJM), and has announced his intention to upset Naveen Patnaik’s applecart. Many BJD poll ticket aspirants could gravitate towards OJM if they are not nominated by the ruling party.

Having been BJD’s election manager in the last two elections, Pyari Mohan knows the party’s chinks. He will definitely play a role in diverting the BJD vote towards non-BJD candidates. This is bound to work to the advantage of the Congress.

The launch of Pyari Mohan’s new political party last week has stirred the pre-poll pot. He announced he would go in for an alliance with any non-BJD party to oust the “blind and autocratic government of Naveen Patnaik”. He claimed that national-level leaders of many political parties are in touch with him for pre-poll tie-ups. He said his alliance will win 80 to 85 seats (in the 147-member Assembly).

Asked about the possibility of OJM joining hands with Congress in Odisha, state Congress president Niranjan Patnaik says, “We are a national party, so any-poll alliance has to be decided at the central level. But Mohapatra has declared that OJM will contest 110 seats. This leaves only 37 seats for the Congress at best. How can we accept this?”

The results of the recent civic body elections in the state have been a shot in the arm for Congress. Candidates of OJM and Congress won most of the seats in the  polls in Hindol, Atabira and Nuapada.While in the newly-formed Hindol Notified Area Council (NAC), Congress won seven and OJM-supported independents won six seats, the ruling BJD managed to get only two seats out of a total of 16.


Similarly, Congress won seven seats in Nuapada NAC against BJD’s four. In the newly formed Atabira NAC, Congress and BJD won six seats each. Political analysts say this is the first poll setback for BJD after Pyari Mohan’s suspension.

But is Congress ready to make the most of the opportunity? “I don’t think so,” says senior political analyst Prashant Patnaik. “Organisationally, Congress is weak. The party faces acute infighting and the senior leadership is bitterly divided.”


Dissidence has indeed been the bane of Odisha Congress for the past decade and a half – a fact that has harmed the party’s stocks in the eyes of the public.

The last spell of Congress rule in Odisha was under Janaki Ballava Patnaik in 1995. It was chaotic and scandal-ridden. Corruption charges, scandals and weak leadership made the party unpopular. The party’s decline in Odisha began when it failed in relief and rehabilitation work in the aftermath of the 1990 super cyclone.

In the 2000 Assembly elections, Congress was down to only 26 seats from 80. In 2004, the party did marginally better, winning 38 seats. In the current Assembly, however, the party has 27 seats. Similarly, while Congress won nearly 35 per cent of the vote in 2004, its vote share declined to 29 percent in 2009.

Congress vice-president Rahul Gandhi visited the state in February. During his two-day stay, he interacted with party functionaries at the district, block and panchayat levels and held marathon sessions. He wanted to figure out why Congress had become so weak in Odisha.

After Rahul’s visit, the state Congress leadership declared that grassroots workers would have a say in the selection of the party’s poll candidates, preference would be given to youth, and no family would be allowed to field more than one aspirant.

Sivananda Ray, state Congress vice-president claims, “People are no longer obsessed with the so-called clean image of Naveen. They are fed up with rampant corruption and irresponsible administration. I strongly believe Congress will return to power.”

If it does not, the party would be in danger of going into terminal decline in Odisha the way it has done in Tamil Nadu, Gujarat and Chhattisgarh.

The Congress last ruled Tamil Nadu in 1967. Since then, it has only been riding piggyback on either of the two main Dravidian parties, DMK and AIADMK. The recent UNHRC resolution on Sri Lanka was a good opportunity for the party to attempt a political comeback. But that opportunity was lost. Right now, the national party is seen as a liability in TN and no outfit would want to align with it to fight the 2014 Lok Sabha polls.

Similarly, Congress has been out of power for over 20 years in Gujarat, with Narendra Modi performing an electoral hattrick. Problems abound for the party in the state, once its stronghold.

The situation is no different in Chhattisgarh, where a factionalism-ridden Congress is struggling to make a comeback. The Raman Singh-led BJP is eying a hattrick in the state. Last year, soon after the Congress defeat in the Bastar Lok Sabha byelection, a young Congressman had accused the party of being “BJP's B team”.


Source : IIPM Editorial,, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Sunday, May 5, 2013

Policy uncertainty and the slow recovery

Policy uncertainty in the aftermath of economic crisis’ tends to slow recovery and suppress consumer spending

Financial turmoil, the Great Recession of 2007 to 2009, and the weak recovery that followed ushered in a period of heightened uncertainty in the United States. Even a year after the recession ended, Federal Reserve chairman Ben Bernanke described the economic outlook as “unusually uncertain.”

Many analysts claim that uncertainty about economic policies and their consequences has been an important factor slowing recovery. Uncertainty about taxes and the effects of policy on interest rates, prices, health costs, and other economic variables can lead households to defer consumer spending, and companies to cut back on capital investments, new product development, hiring, and worker training. Because new projects are expensive to reverse and because workers are costly to hire and fire, companies have an incentive to wait for greater political stability and policy certainty before proceeding with new business undertakings. If too many companies adopt a cautious stance in response to policy uncertainties, economic recovery may not take hold.

The price of policy uncertainty indeed could be high, according to a recent study titled, Measuring Economic Policy Uncertainty undertaken by me and Stanford University professor Nicholas Bloom. We developed a new index of policy-related economic uncertainty. The index reaches historically high levels after the Lehman Brothers bankruptcy and again over the past year in reaction to the eurozone crisis and the US debt ceiling impasse. We estimate that an increase in policy uncertainty of the size experienced from 2006 to 2011 leads to a fall in real Gross Domestic Product of 3.2%, a sharp drop in business investment spending of 16%, and a loss of about 2.3 million jobs.

The financial crisis and recession presented new and difficult challenges for policy makers. We believe that unusual policy challenges created by extraordinary economic disturbances were the main sources of elevated policy uncertainty in 2008 and 2009. The most threatening aspects of the financial crisis were contained by the middle of 2009, causing our policy uncertainty index to fall substantially in the latter part of 2009.

The index rises again in 2010 and 2011, however, reaching even higher levels than it did at the peak of the financial crisis. High levels of policy uncertainty in the past two years partly reflect deliberate policy choices and political gridlock. A clear example is the debt-ceiling dispute in the summer of 2011 between Democrats and Republicans, which created a real threat of a partial government shutdown. Congress eventually raised the debt ceiling, but agreement came at the last minute and with huge market volatility. Much of the high levels of policy uncertainty in 2011 were caused by policy decisions and policy maker conflicts over how to proceed.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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